Saturday, 25 June 2022 | 11:20 WIB

BI: Investors Seek Gold as US-China Trade War Shakes Global Markets

BI: Investors Seek Gold as US-China Trade War Shakes Global Markets (financialtribune)

JAKARTA, NETRALNEWS.COM - Bank Indonesia (BI) Senior Deputy Governor Destry Damayanti says investors are increasingly seeking to invest in gold as a safe investment target, as the US-China trade war continues to affect the global markets.

Destry said said US-China trade war had triggered global economic turmoil, and the situation did not provide many investment choices for investors.

"Gold is still considered a safe investment by investors," she said.

Destry considers gold to still offer the smallest risk, when there is a lot of uncertainty in the global markets.

She mentioned that many countries had lowered their interest rates, including Indonesia, which had also lowered its benchmark interest rate, as reported by Antara.

Previously, Destry reminded that BI had cut down the benchmark interest rate by 25 basis points (bps) to 5.5 percent. BI Governor Perry Warjiyo gave three reasons related to the benchmark rate cut.

"The low inflation forecast until 2020 is one reason for the decline in the benchmark interest rate," Perry Warjiyo said.

Second, there is an element of confidence that returns from investment returns will still be attractive even if BI's benchmark interest rates go down. Finally, the third reason is to increase lending by the banks which are expected to encourage the acceleration of the national economy.